MYOB Australian Small Business Survey. Special Focus Report: Federal Government Budget & Policies, Working Patterns and Internet Use

MYOB Australian Small Business Survey Special Focus Report: Federal Government Budget & Policies, Working Patterns and Internet Use July 2008 Prepared for MYOB Australia MYOB Contact: Naomi Helleren Tel: (03) 9222 9951 Email: naomi.helleren@myob.com Web: www.myob.com.au Address: 12 Wesley Crt, Burwood East, VIC 3151 2008 Copyright strictly enforced

MYOB Australian Small Business Survey March 2008 Table of Contents Table of Contents... 2 List of Charts... 3 About the Study... 4 House of Representatives preferred vote... 5 Preferred Treasurer... 8 Awareness of Fair Work Australia... 10 Perceived impact of the Fair Work Australia policy... 12 Commercial Ready awareness... 13 Use of Commercial Ready program... 14 Closure of Commercial Ready program... 15 Research on Federal Budget... 16 Preferred political parties... 20 Time worked per week... 22 Days worked per week... 23 Typical hours worked per day... 24 Time spent at a computer... 29 Time spent on Internet... 30 Utilisation of business websites... 33 Online selling... 35 Website set-up... 37 Website maintenance... 38 Domain name registration... 39 Appendix 1- Political trend... 40 Appendix 2- House of Representatives preferred vote breakdown... 41 Appendix 3- Preferred Treasurer... 42 Appendix 4- Awareness of Fair Work Australia breakdown... 43 Appendix 5- Research on Federal Budget breakdown... 44 Appendix 6- Domain name registration break down... 45 Appendix 7- Reported hours per day/days per week... 46 Appendix 8- Frequency of online activities... 47 Appendix 9- Special focus survey questions... 48 2

List of Charts Figure 1: Currently vote in a House of Representatives election (%)...5 Figure 1.1: Currently vote in a House of Representatives election by state and industry (%)...6 Figure 2: Preferred Treasurer (%)...8 Figure 3: Awareness of Fair Work Australia policy (%)...10 Figure 3.1: Awareness of Fair Work Australia policy by state (%)...10 Figure 4: Perceived impact of Fair Work Australia policy on own business (%)...12 Figure 5: Awareness of Commercial Ready Program (%)...13 Figure 6: Know someone who made use of Commercial Ready program (%)...14 Figure 7: Previously heard about the closure of the Commercial Ready program (%)...15 Figure 8: Actively looked into the 2008-2009 Federal Budget (%)...16 Figure 9: Budget s impact on your general business performance (%)...17 Table 1: Impact of certain budget initiatives on own business (%)...19 Figure 10: Political parties with the most to offer (%)...20 Figure 11: Number of hours for typical work week (%)...22 Figure 12: Number of days for typical work week (%)...23 Figure 13: Number of hours worked per day on average (%)...24 Figure 13.1: Number of hours worked per day on average by state (%)...24 Figure 13.2: Number of hours worked per day on average by industry (%)...25 Figure 14: Proportion of time spent working outside office or workplace (%)...27 Figure 14.1: Proportion of time spent working outside office or workplace by industry (%)...27 Figure 15: Proportion of time spent sitting at a computer (%)...29 Figure 16: Proportion of time spent online, time on computer and hours worked per day (%)...30 Figure 17: Online activities small business owners do and don t take part in (%)...31 Figure 18: Current use of business website (%)...33 Figure 18.1: Businesses websites utilisation (those respondents who answered yes ) by industry (%)...33 Figure 19: Businesses who sell good and/or services online (%)...35 Figure 19.1: Businesses who sell goods or services online by industry (%)...35 Figure 20: How long ago was the business website set up (%)...37 Figure 21: How long ago did you last update your business website (%)...38 Figure 22: Business has a domain name (%)...39 Figure 23: Current vote for a House of Representatives election (%)...40 Figure 23.1: Preferred Treasurer (%)...40 Table 2: Currently vote in a House of Representatives election breakdown (%)...41 Table 3: Preferred Treasurer breakdown...42 Table 4: Awareness of Fair Work Australia policy breakdown (%)...43 Table 5: Actively looked into, reviewed or researched the new budget breakdown (%)...44 Table 6: Business has a domain name breakdown (%)...45 Table 7: Number of hours and days worked (%)...46 Table 8: Frequency of online activities (%)...47 3

About the Study This report presents the findings of the Special Focus Questions from the MYOB Australian Small Business Survey. The survey comprised a national sample of 1,693 small business proprietors and general managers, conducted in June 2008. These small businesses are defined as both non-employing and employing businesses with fewer than 20 employees. Results have been weighted to reflect the small business population distribution according to the Australian Bureau of Statistics (ABS) for company size, length of time operating, and selected ANZSIC Industry divisions (refer to ABS publications Characteristics of Small Business, 2004; 8127.0 and Counts of Australian Businesses, Jun 2006; 8165.0) The overall objective of this quarters special focus questions is to provide insight into the attitudes and opinions of small business owners/managers in regards to the current Federal Government s budget and policies, as well as work and Internet behaviours and potential use of online accounting software. The special focus areas presented in this report include: Current political preferences The impact of Fair Work Australia Commercial Ready Program The impact of the 2008-2009 Federal budget on small business Working patterns Computer and Internet usage 4

House of Representatives preferred vote Just over one third (36%) of small business owners would vote for the Liberal Party Figure 1: Currently vote in a House of Representatives election (%) Jun 08 Jul 07 Liberal Party of Australia 36% 36% 36% Australian Labor Party 25% 25% 24% Don't know 12% 12% 12% Don't care/no political interest 5% 5% 5% Australian Greens 4% 4% 2% National Party of Australia 4% 4% 3% Refused 4% 4% 6% Independents 3% 3% 3% Family First Party 2% 2% 2% Australian Democrats 2% 2% 2% One Nation Party 1% 1% 1% Christian Demographic Party 1% 1% 1% Country Liberal Party- The Territory Party 0% 0% 0% 5

Figure 1.1: Currently vote in a House of Representatives election by state and industry (%) TAS 49% 25% 9% SA 41% 23% 10% VIC 38% 23% 16% QLD 37% 26% 10% NSW 34% 26% 12% WA 34% 22% 13% ACT 32% 25% 11% NT 30% 32% 2% Transport and storage 43% 23% 9% Construction 39% 21% 17% Wholesale trade 39% 28% 12% Property and business services 38% 28% 11% Health 38% 28% 5% Information and communications technology 38% 18% 12% Finance and Insurance 37% 30% 9% Manufacturing 36% 30% 15% Retails trade 35% 18% 14% Agriculture 33% 23% 14% Accommodation, Café and Restaurant 31% 21% 14% Education 29% 26% 17% Personal and other services 29% 29% 12% Tourism 29% 14% 14% Cultural and recreational services 20% 28% 17% Communications, media and marketing services 18% 38% 13% Liberal Party of Australia Australian Labor Party Don't know 6

Base: Small business owners (n=1693) Q16: If an election for the House of Representatives was held today, which party would you vote for? Just over one third (36%) of small business owners surveyed would vote for the Liberal Party if faced with a House of Representatives vote today. This is followed by 25% who reported a preference for the Labor Party. A total of 12% of small business owners indicated that they do not know who they would vote for if a House of Representatives election was held today. In comparison to the results from the July 2007 Small Business Survey, there has been little to no change seen in the voting preference of small business owners for all political parties. In regards to state preferences, small business owners in Tasmania had the highest preference for the Liberal Party with a total of 46% indicating they would vote for the Liberals. This is followed by South Australia (41%) and Victoria (38%). The highest preference amongst small business owners for the Labor Party was found in the Northern Territory (32%), New South Wales and Queensland (both 26%). Transport and Storage (43%), Construction and Wholesale Trade (both 39%) are the industries where small business owners are most likely to vote for the Liberal Party. While small business owners in Communications, Media and Marketing Services (38%), Finance and Insurance and Manufacturing (both 30%) are most likely to vote for the Labor Party. Small business owners over the age of 65 years are far more likely to vote for the Liberal Party, with 53% having a Liberal preference, compared to all younger age groups (between 18 and 65 years) who s Liberal preferences range from 32% to 38%. This over 65 age group is also less likely to indicate that they do not know who they would vote for (3%) or not care/have no political interest (1%). The vote for the Labor Party is more likely to be comprised of smaller businesses and sole traders than those with a larger number of employees (over10), with 27% of sole traders, 22% of those with 1 employee, 21% of those with 2-4 employees and 23% of those with between 5 and 9 employees reporting a preference for Labor. This is in comparison to only 15% of businesses with between 10 and 19 employees who would vote the same way. 7

Preferred Treasurer Three out of ten (35%) small business owners are unsure of their preferred Treasurer Figure 2: Preferred Treasurer (%) Jun 08 Jul 07 Don't know/not sure 35% 35% 23% Malcolm Turnbull 32% 32% *N/A Wayne Swann 21% 21% 17% Don't care/no political interest 9% 9% 6% Refused 2% 2% 6% * Please note change in Liberal Party Treasurer since the July 2007 MYOB Small Business Survey. Base: Small business owners (n= 1693) Q17: Who do you think would make a better Treasurer out of Malcolm Turnbull and Wayne Swann? While 35% of small business owners are unsure of who would make a better Treasurer out of Malcolm Turnbull and Wayne Swann, 32% have a preference for Malcolm Turnbull. Wayne Swann follows as the preferred Treasurer for 21% of small business owners surveyed. The number of small business owners who are unsure of their preference for Treasurer has risen by 12% (from 23% in July 2007 to 35% in June 2008). The preference for Wayne Swann has also risen by 4% since July 2007 (from 17% to 21%). It could easily be assumed that the higher preference for Malcolm Turnbull is reflective of the current preference for the Liberal Party by small business owners. When comparing the current House of Representatives vote with preferred Treasurer, it is found that 69% of the 39% of small business owners who would vote for the Liberal Party also prefer Malcolm Turnbull, while 71% of those who would vote for the Labor party (25%) prefer Wayne Swann. Thus small business owners preferred Treasurer is largely reflective of their political party preference. 8

Like the results for the current vote in a House of Representatives election, the over 65 years age group is much more likely to vote for Malcolm Turnbull (71%) over Wayne Swann (13%) as their preference for the Liberal Party has been pre-established (and Malcolm Turnbull being the Liberal Treasurer). This is in comparison to 18-29 year olds who have an almost equal preference for both Treasurers (19% Turnbull and 17% Swann), through to the 60-65 years age group (who other than over 65ers have the highest Liberal preference) who have 41% for Turnbull and 29% for Swann. It is interesting to note the 30% increase between 60-65 year olds and those over 65 years in regards to preference for Malcolm Turnbull. Again, small business owners aged over 65 years are also less likely to report they don t know who their preferred Treasurer is (15%), and don t have a political interest (1%). This is in comparison to small business owners aged between 18 and 49 years who have an average of 42% don t know response, and those aged between 50 and 65 years who have an average of 26% don t know response. The level of don t care/no political interest reported also increases when the age of the small business owner decreases, with 18% of those aged 18-20 years reporting no interest through to 3% of 60-65 year olds. Overall it is established that small business owners in a higher age range (specifically those over the age of 65 years) are much more politically active and have strong ties to the Liberal Party. Larger businesses are also more likely to prefer Malcolm Turnbull than Wayne Swann with 49% of those businesses with 5-9 employees and 48% of those with 10-19 employees preferring Liberal Malcolm Turnbull (in comparison to 27% of sole traders). 9

Awareness of Fair Work Australia More than half (58%) of small business owners have an awareness of the Fair Work Australia policy Figure 3: Awareness of Fair Work Australia policy (%) Yes 58% No 38% Unsure 4% Figure 3.1: Awareness of Fair Work Australia policy by state (%) TAS 75% 24% 1% SA 63% 36% 2% NSW 59% 37% 4% VIC 58% 36% 6% QLD 57% 39% 4% WA 46% 52% 2% Yes No Unsure 10

Base: Small business owners (n= 1693) Q18: The new Federal Government has rolled back Work Choices and removed Australian Workplace Agreements and replaced this with 10 guaranteed minimum conditions to be administered by a body called Fair Work Australia. Before today, had you heard about this policy? More than half (58%) of small business owners surveyed have previously heard of the Federal Government s Fair Work Australia policy, while 38% have not. Small business owners in Tasmania are more likely to be aware of the Fair Work Policy than any other state, with 75% reporting they had heard of the policy. This is followed by South Australia (63%) and New South Wales (59%) through to Western Australia (46%). Of those small business owners who are aware of the Fair Work Australia policy (58%), 74% of this group had also looked into or researched the 2008-2009 Federal budget. This group is clearly proactive with remaining informed regarding political initiatives and policies. Businesses that have been operating longer are also more likely to be aware of the Fair Work Australia policy, with 66% of those small business owners who have operated their business for 10 years or more being aware of the policy, this is in comparison to 51% of those businesses who have been operating for less than 5 years. 11

Perceived impact of the Fair Work Australia policy More than half (60%) of the small business owners surveyed believe the Fair Work Australia policy has made no difference to their business Figure 4: Perceived impact of Fair Work Australia policy on own business (%) Very positive impact 2% Positive impact 6% No difference- neither positive or negative 60% Negative impact 13% Very negative impact 4% Unsure 15% Base: Small business owners (n= 1693) Q19: What impact, if any, do you think the Fair Work Australia policy will have on your business? Six in ten (60%) small business owners surveyed believe that the Fair Work Australia policy has had neither a positive nor negative impact on their business. This is followed by 15% who are unsure of its impact, 13% who believe that it has had a negative impact and 6% who believe it has had a positive impact. 12

Commercial Ready awareness The majority (83%) of small business owners are not aware of the Commercial Ready program Figure 5: Awareness of Commercial Ready Program (%) Don't know Yes, aware of Commercial Ready No Base: Small business owners (n=1693) Q20: Before today, had you heard of the Commercial Ready program? The vast majority of small business owners have not heard of the Commercial Ready Program (83%), while only 14% are aware of the program and 3% are unsure. 13

Use of Commercial Ready program Virtually no small business owners surveyed have either used, or know someone who has used, the Commercial Ready program. Figure 6: Know someone who made use of Commercial Ready program (%) Don't know 4% Yes- Knew of someone else 3% Yes- Myself 0% No 93% Base: Small business owners (n=1693) Q21: Do you personally know of anyone who had made use of the Commercial Ready program? Virtually no small business owners surveyed have used, nor do they know of anyone who has used, the Commercial Ready program. Only 3% of small business owners knew of someone else who had used the program, while none had used it themselves. 14

Closure of Commercial Ready program The majority (89%) of small business owners surveyed had not heard about the closure of the Commercial Ready program Figure 7: Previously heard about the closure of the Commercial Ready program (%) Don't know 3% Yes, have heard of closure 8% No 89% Base: Small business owners (n=1693) Q22. Before today, had you heard of the Government s decision to close the Commercial Ready Program (from 14 th May 2008)? Only 8% of small business owners surveyed had heard of the closure of the Commercial Ready program; noting that just 14% of small business owners were aware of it to begin with. 15

Research on Federal Budget Over half (63%) of small business owners had not looked into the 2008-2009 Federal Budget Figure 8: Actively looked into the 2008-2009 Federal Budget (%) Yes, actively looked into the Federal budget 37% No 63% Base: Small business owners (n=1693) Q23. Before today, had you actively looked into, reviewed, or researched the new 2008-2009 Federal Budget in any way? Since the release of the new 2008-2009 Federal budget, 63% of small business owners surveyed have not looked into, reviewed or researched the budget in any way, while 37% have. It is interesting to note that the larger the business, the more likely the business owner is to have actively looked in to the 2008-2009 budget. This ranges from 33% of sole traders who report doing so, through to 52% of small business owners with between 10 and 19 employees who reported looking into or reviewing the new budget. Those small business owners in Tasmania (50%) are more likely to have looked into, reviewed, or researched the new budget, compared to the least likely with only 24% of small business owners in Western Australian having looked into the 2008-2009 Federal budget. 16

2008-2009 Budget impact on business performance Half of small business owners perceive the 2008-2009 Federal budget will have no impact on their business performance Figure 9: Budget s impact on your general business performance (%) Jun 08 Mar 08 Very positive impact 1% 1% 3% Positive impact 7% 7% 18% No difference- neither positive nor negative 51% 51% 73% Negative impact 24% 24% 5% Very negative impact 4% 4% 1% Don't know 14% 14% *N/A *Please note that the June 2007 MYOB Small Business Survey did not include Don t know as a response option for this question. Base: Small business owners (n=1693) Q24: Overall, how do you feel the new Federal Budget will affect your business performance in general? Half (51%) of small business owners surveyed believe that the new 2008-2009 Federal budget will have no impact on the performance of their business. Twenty-four percent (24%) of small business owners believe that the budget will have a negative impact on the general performance of their business, which has increased from the release of the previous Federal budget (noted in the July 2007 MYOB Small Business Survey) where 5% of small business owners perceived a negative impact (increase of 19%). 17

While 7% of small business owners feel there will be a positive impact from the 2008-2009 Federal budget, this has decreased since the release of the previous budget where 18% perceived a positive impact (decrease of 11%). Small business owners who report expecting their business to perform worse than now over the next 12 months (10%), were more likely to perceive a negative or very negative impact from the 2008-2009 budget, with 40% of small business owners who reported a worse than now future business performance also reporting a negative impact from the new budget. An additional 10% of small business owners who reported a worse than now performance also reported a very negative impact from the new budget. 18

Impact of 2008-2009 Budget initiatives When asked to rate the key 2008-2009 Federal budget initiatives, small business owners indicate that the initiatives (other than income tax cuts) will make no difference to their business performance Table 1: Impact of certain budget initiatives on own business (%) Budget Initiative Very positive Positive No difference Negative Very negative Don t know Additional funding for apprentices and training places to assist with the skills shortage Increase in skilled migration to assist with the skills shortage Childcare tax rebate for out-of-pocket childcare expenses increasing from 30% to 50% 5% 19% 65% 2% 1% 8% 2% 13% 65% 8% 3% 8% 3% 13% 70% 3% 3% 8% Personal income tax cuts 8% 40% 42% 2% 1% 7% Increased funding of Enterprise Connect, Innovation Centres and funding to Business Enterprise Centres Increase in Medicare levy surcharge threshold and low income thresholds Depreciation of software purchases changed to over 4 years (previously 2.5 years) Eligibility for the entrepreneurs tax offset will be subject to an income test Eligibility for the Baby Bonus will be limited to families with an adjusted taxable income of $150,000 or less 2% 11% 67% 2% 1% 16% 2% 12% 64% 11% 3% 8% 3% 18% 39% 27% 5% 9% 2% 5% 64% 11% 3% 15% 2% 4% 78% 4% 3% 8% Base: Small business owners (n=1693) Q25: What, if any, impact do you feel each of the following budget initiatives (recently announced as part of the Federal Budget for 2008-2009) will have on your business performance in general? Small business owners were asked to rate the impact of various 2008/2009 Federal budget initiatives on their business performance. The most positively perceived 2008-2009 budget initiative was Personal income tax cuts which was reported as having a very positive impact by 8% of small business owners surveyed and a positive impact by 40%. Personal income tax cuts was also the most well received initiative of the 2007-2008 Federal budget with the July 2007 survey reporting 46% positive impact and 15% very positive impact. This is followed by Additional funding for apprentices and training places to assist with the skills shortage, which had 24% of small business owners reporting a positive/very impact. 19

Preferred political parties Small business owners perceive the Liberal Party as having more to offer them on an Economic front, while the Labor Party is seen as offering them more in Education Figure 10: Political parties with the most to offer (%) Small Business 18% 44% 33% 1% Environment 19% 21% 24% 33% 1% National Security 21% 40% 35% 2% 1% Economy 25% 47% 24% 1% Foreign Affairs 26% 39% 32% 1% Tax 28% 41% 28% 1% Health 33% 30% 32% 2% 1% Industrial Relations 33% 40% 23% 1% Childcare 36% 20% 38% 2% 1% Education 38% 30% 26% 2% Labor Party Liberal Party Don't know Greens Democrats * Please note a 1%-2% answer of other for all areas Base: Small business owners (n=1693) Q26: For each of the following areas (e.g. health, education etc.) please select which Australian political party you personally feel has the most to offer you at this point in time. 20

Small business owners were asked to choose one political party in Australia that they personally feel has the most to offer them on a range of topics. In regards to specific parties, the Liberal Party is seen as having more to offer small business owners in the area of Economy (47%), which is similar to the results from the July 2007 survey (50%). Results related to the Liberals that are similar with the July 2007 survey also include Small Business (44% currently and 41% in July 2007), and Tax (41% currently and 45% in July 2007). Small business owners feel that the Labor Party has more to offer them in Education 38% (up from 31% in July 2007), Childcare 36% (up from 25% from July 2007), and Health 33% (up from 29% in July 2007). The Greens were perceived as having more to offer small business owners than both the Liberal and Labor parties in the area of Environment (33%) following on from 29% in July 2007. Overall, many small business owners remain unsure about which political parties have more to offer in all categories. This ranges from 38% in Childcare through to Economy and Environment (both with 24% unsure). 21

Time worked per week One third of small business owners estimate they work over 50 hours in a typical work week. Figure 11: Number of hours for typical work week (%) 23% 25% 12% 14% 9% 9% 8% 0-10 hours 11-20 hours 21-30 hours 31-40 hours 41-50 hours 51-70 hours > 70 hours Base: Small business owners (n=1693) Q27a: Thinking of the most recent typical work week you experienced (i.e. no holiday leave, public holidays, sick leave etc.), how many hours did you work to run your business that week? One quarter (25%) of small business owners surveyed estimate they worked between 51 and 70 hours per week in their most recent typical work week. A further 23% worked between 41 and 50 hours in this typical week. These results are comparative to those from previous quarters where small business owners were asked to report on the average number of hours worked per week (note: not the previous typical work week), which found that 24% worked between 51 and 70 hours each week in March 2008, and 25% in November 2007. This is a clear reflection of the most recent work week reported in the current survey where 25% also reported working 51-70 hours. Furthermore, 22% of small business owners worked an average of 41-50 hours per week in March 2008, and 23% in November 2007, this is compared to the current survey where 23% report they worked these same hours in their most typical work week 22

Days worked per week Almost half (46%) of small business owners say they worked 6 or 7 days per week in a typical work week Figure 12: Number of days for typical work week (%) 31% 30% 16% 8% 8% 4% 4% 1 day 2 days 3 days 4 days 5 days 6 days 7 days Base: Small business owners (n=1693) Q27b: And how many days per week did you work in the most recent typical work week? In regards to number of days worked in the most recent typical work week, 77% of small business owners surveyed worked between 5 and 7 days, with 16% of this group working 7 days. When analysing these estimated typical work times together, 14% of small business owners estimated working between 51 and 70 hours over 6 days. A total of 11% estimated working between 41 and 50 hours over 5 days, and 8% estimated working between 31 and 40 hours over 5 days, as well as between 41 and 50 hours over 6 days. 23

Typical hours worked per day One third (34%) of small business owners estimate they worked More than 10 hours per day in their most recent typical work week Figure 13: Number of hours worked per day on average (%) 15% 17% 17% 7% 7% 8% 7% 5% 5% 5% 2% 3% 3% 1 hour per day 2 hours per day 3 hours per day 4 hours per day 5 hours per day 6 hours per day 7 hours per day 8 hours per day 9 hours per day 10 hours per day 11 hours per day 12 hours per day >12 hours per day Figure 13.1: Number of hours worked per day on average by state (%) SA 57% 26% 2% TAS 53% 35% 1% WA 50% 24% 4% QLD 46% 33% 4% NSW 45% 29% 5% VIC 45% 30% 6% 6-9 hours per day 10-12 hours per day >12 hours per day 24

Figure 13.2: Number of hours worked per day on average by industry (%) Finance and insurance 57% 20% 5% Manufacturing 55% 30% 7% Property and business services 50% 28% 2% Construction 49% 35% 3% Personal and other services 48% 19% 5% Health 48% 25% 4% Education 47% 26% 5% Information and communication technology 46% 32% 6% Wholesale trade 45% 38% 2% Cultural and recreational services 45% 26% 5% Agriculture 44% 29% 6% Retail trade 43% 27% 6% Communications, media and marketing services 42% 33% 6% Transport and storage 29% 43% 13% Accommodation, café and restaurants 29% 50% 7% 6-9 hours per day 10-12 hours per day >12 hours per day Figure 13.2: Number of hours worked per day on average by business size (%) Sole trader 47% 22% 4% 1 employee 48% 31% 6% 2-4 employees 45% 41% 5% 5-9 employees 46% 47% 7% 10-19 employees 46% 47% 4% 6-9 hours per day 10-12 hours per day >12 hours per day 25

Base: Small business owners (n=1693) Q27c: On average, how many hours per day did you work in the most recent typical work week? Almost half (46%) of small business owners surveyed estimate working an average of 6-9 hours per day in a typical work week, with 7% working 6 hours, 8% working 7 hours, 15% working 8 hours and 17% working 9 hours per day on average. A further 17% of small business owners estimate they worked 10 hours, and 17% worked more than 11 hours per day. Queensland has the longest average working day of all the states with a total of 37% small business owners estimating they work over 10 hours per day. This includes 33% who work between 10 and 12 hours per day and 4% who work over 12 hours. The states with the next longest hours are Victoria and Tasmania which both have 36% of small business owners estimating they work over 10 hours per day in the most typical workweek. In regards to industry, small business owners that work the longest hours are those in the Accommodation, Café and Restaurant sector where 57% estimated they worked over 10 hours per day in a typical workweek. This is followed by the Transport and Storage industry, where 56% of small business owners estimated working for more than 10 hours per day; this includes 13% who worked more than 12 hours per day in their most recent typical workweek. Owners of larger small businesses are more likely to work longer hours with 47% of both small business owners with 5-9 employees and 10-19 employees working between 10 and 12 hours per day. An additional 7% of small businesses owners with 5-9 employees, and 4% of those with 10-19 employees, work over 12 hours per day. When comparing the reported average hours worked per day with the estimated days worked in the most recent typical workweek, results show that 9% of small business owners work an average of 10 hours a day, 6 days a week (total 54 hours). A further 8% work an average of 9 hours a day, 5 days a week (total 45 hours), 7% work an average of 8 hours a day, 5 days a week (total 40 hours), and 6% report working an average of 9 hours a day, 6 days a week (total 54 hours). In summary of these results, it is noted that 22% of small business owners work 8+ hours/5 days a week, 26% work 8+ hours/6 days a week, and 13% work 8+ hours/7 days a week. At the other end of the scale, only 16% of small business owners work less than 8 hours per day and less than 5 days a week. 26

Time spent away from office/workplace The majority (61%) of small business owners estimate they spend between 1 and 5 hours a day working away from their office or place of work Figure 14: Proportion of time spent working outside office or workplace (%) 17% 19% 18% 10% 9% 5% 4% 5% 6% 2% 2% 0% 1% 1% 0 hours- Never 1 hour 2 hours 3 hours 4 hours 5 hours 6 hours 7 hours 8 hours 9 hours 10 hours 11 hours 12 hours > 12 hours Figure 14.1: Proportion of time spent working outside office or workplace by industry (%) Accommodation, café and restaurants 98% 1% Cultural and recreational services 93% 6% Communications, media and marketing services 93% 8% Retail trade 90% 10% Health 89% 12% Information and communication technology 85% 16% Education 85% 14% Manufacturing 84% 16% 1% Wholesale trade 80% 20% Personal and other services 80% 18% 1% Finance and insurance 78% 20% 1% Agriculture 75% 25% 1% Property and business services 75% 24% Construction 64% 37% Transport and storage 60% 30% 8% 6-9 hours per day 10-12 hours per day >12 hours per day 27

Base: Small business owners (n= 1693) Q28: In a typical day in your business, what proportion of your time is spent working outside of your office or workplace (e.g. with customers, on site, travelling, etc.)? A total of 61% of small business owners surveyed estimate spending between 1 and 5 hours away from their place of work on a typical day, this includes 19% who spend 1 hour, 18% who spend 2 hours and 19% who spend 3 hours away from their workplace. A further 19% estimate they spend between 6 and 10 hours away from their office or workplace on a typical day. Small business owners in the Transport and Storage industry spend more time away from their workplace than workers in other industries, with 30% estimating they spend between 10-12 hours per day and 8% spending more than 12 hours per day away from their workplace. This is followed by Construction, where 37% of small business owners estimate spending between 10 and 12 hours per day away from their workplace on average. 28

Time spent at a computer Majority of small business owners estimate spending between 1 and 5 hours sitting at a computer on a typical workday Figure 15: Proportion of time spent sitting at a computer (%) 17% 17% 17% 16% 15% 12% 11% 11% 10% 8% 7% 7% 7% 7% 5% 5% 5% 5% 5% 3% 3% 2% 2% 1% 1% 0% 0% 0 hours- Never 1 hour 2 hours 3 hours 4 hours 5 hours 6 hours 7 hours 8 hours 9 hours 10 hours 11 hours 12 hours > 12 hours Time spent at computer Hours worked per day Base: Small business owners (n=1693) Q29: In a typical day in your business, what proportion of your time do you physically spend sitting at a computer or laptop? Over half (67%) of small business owners surveyed estimate spending between 1 and 5 hours physically sitting at a computer or laptop on a typical day at work, this includes 16% who only spend 1 hour and 17% who only spend 2 hours. This is followed by 26% who estimate spending between 6 and 10 hours. 29

Time spent on Internet Majority of small business owners estimate they spend between 1 and 5 hours online in a typical workday Figure 16: Proportion of time spent online, time on computer and hours worked per day (%) 42% 23% 15% 17% 17% 17% 11% 8% 2% 3% 3% 5% 7% 7% 7% 4% 2% 8% 1% 2% 0% 1% 1% 0 hours- Never 1 hour per day 2 hours per day 3 hours per day 4 hours per day 5 hours per day 6 hours per day 7 hours per day 8 hours per day 9 hours per day 10 hours per day > 10 hours Hours worked per day Hours online *Note: The data for the MYOB Small Business Survey is collected online and this may influence overall results. Base: Small business owners (n=1693) Q30: In a typical day in your business, what proportion of your time do you physically spend online using the web/internet? AMR Interactive, June 20 The majority (87%) of small business owners spend an average of between 1 and 5 hours online each day; this includes 42% who spend 1 hour a day, and 23% who spend 2 hours per day. This is in comparison to only 8% who never use the Internet and 7% who spend over 11 hours each day. It is interesting to note that those small business owners who work the longest hours per day, are less likely to be using a computer or laptop and/or be online. Of the 66% of small business owners who estimate working over 8 hours per day, only 11% report spending more than 8 hours at a computer and 4% spending more than 8 hours online. However, as the Accommodation, Café and Restaurant industry, as well as the Transport and Storage industry, are previously stated to work the longest hours among the small business owners surveyed, this result is expected as both these industries/occupations require staff to participate in other activities away from computers (serving food and driving for example). 30

Online activities The most common activities completed online are Internet banking, paying bills on supplier websites and using webmail Figure 17: Online activities small business owners do and don t take part in (%) Use online/internet banking facilities 9% 91% Pay business bill on supplier websites Use webmail (e.g. hotmail, yahoo, gmail etc.) 21% 22% 79% 78% Use customer self-service tools online for various products/services (e.g. online technical support) 34% 66% Email marketing (e.g. to potential or existing customers) Payment processing online (i.e. using a website as an EFTPOS terminal) Distribute photos, audio or video clips 49% 51% 47% 53% 46% 54% Online community or forum (e.g. noticeboards, advice, chat, etc.) Social applications, such as Myspace or Facebook etc. Distribute product brochures for your business Use a web-based calendar Transact with your customers (e.g. via a shopping cart) including accepting payments Backup your business information online (e.g. online backup application Wiki or other knowledge management systems Store your documents online (e.g. via an online document storage application) 39% 37% 35% 34% 33% 31% 31% 28% 61% 63% 65% 66% 67% 69% 69% 72% Blog Distribute password-protected content (e.g. pricing or technical documents) to your customers 20% 17% 80% 83% Do online Don't do online 31

*Note: The data for the MYOB Small Business Survey is collected online and this may influence overall results. Base: Small business owners (n=1693) Q34: How often, if at all, do you use each of the following things online via the web/internet either at work or at home? The most commonly used online activity is online/internet banking which is used by 91% of small business owners surveyed. Paying business bills on supplier websites is utilised by 79% of small business owners and 78% use webmail facilities (hotmail, yahoo, gmail, etc.). Using customer self-service tools online for various products/services (e.g. online technical support) is used by 66% of small business owners surveyed. Of those small business owners who Use online/internet banking (91%), 82% participate in this activity weekly or more often. Use of webmail (e.g. hotmail, yahoo, gmail etc.) is used weekly or more often by 66% of small business owners and Pay business bill on supplier websites has 54% participating weekly or more often. However, the majority of small business owners surveyed do not participate in most of the online activities listed. This ranges from 83% who never Distribute password-protected content (e.g. pricing or technical documents) to your customers and 80% who never use Blogs, through to 51% who never use Email marketing (e.g. to potential or existing customers), it must be noted with this activity that while half of small business owners do not participate, 22% do so weekly or more often. 32

Utilisation of business websites Just under half of small businesses currently have a website Figure 18: Current use of business website (%) Jun 08 Mar 08 No 59% 59% 60% Yes 41% 41% 40% Figure 18.1: Businesses websites utilisation (those respondents who answered yes ) by industry (%) Communication, media and marketing services Cultural and recreational services IT/Information & Communication Technology Wholesale trade Education Retail Trade Property and business services Manufacturing Accommodation, café and restaurants Health and community services Finance and insurance Personal and other services Constructions Agriculture 72% 71% 63% 61% 56% 52% 49% 48% 44% 38% 38% 33% 29% 27% Transport and storage 11% 33

Base: Small businesses owners (n=1693) Q36: Does your business have a website? Forty-one percent (41%) of small businesses currently have a company website. These figures are consistent with those from March 2008. Those small businesses in the Communications, Media and Marketing Services (72%), Cultural and Recreational Services (71%) and IT/Information and Communication Technologies (63%) are most likely to have a business website. 34

Online selling One-third of website users currently sell goods or services online Figure 19: Businesses who sell good and/or services online (%) Jun 08 Mar 08 No 70% 70% 68% Yes 29% 29% 32% Figure 19.1: Businesses who sell goods or services online by industry (%) Cultural and recreational services 51% Accommodation, café and restaurants 48% Agriculture Retail Trade 45% 47% Wholesale trade 41% Education 35% IT/Information & Communication Technology 31% Manufacturing 28% Transport and storage 27% Personal and other services 22% Health and community services 22% Property and business services 19% Communication, media and marketing services 13% Finance and insurance 13% Constructions 12% 35

Base: Small businesses that have a currently website (n=756) Q37: Do you sell goods or services via your business website (e.g. online shopping or e-commerce facility) Of the small businesses that currently have a company website (41%), 29% sell goods or services via their website. Small businesses in the Cultural and Recreational Services sector (51%) and Accommodation, Café and Restaurant sector (48%) are most likely to have selling capabilities on their website. 36

Website set-up Three-quarters (75%) of small businesses have had their website for less than 5 years Figure 20: How long ago was the business website set up (%) 26% 19% 21% 13% 9% 9% 4% Less tha 6 months ago 6 monthsless than 1 year 1-2 years ago 3-4 years ago 5-6 years ago 7-10 years ago Over 10 years Base: Small businesses that have a currently website (n=690) Q38: How long ago did you set up your business website? The majority of small businesses set up their website within the last 5 years (75%). However it is noted that the sample of small business owners for this survey includes 49% whose business has been in operation for less than 5 years. Of those businesses who have been operating for 10 or more years, 24% set up their website 5-6 years ago, 17% 7-10 years ago and 11% over 10 years ago. 37

Website maintenance The majority of small business owners surveyed have recently updated their website Figure 21: How long ago did you last update your business website (%) 51% 28% 4% 11% 7% Within the last month Within the last 1-6 months Within the last 7-11 months Within the last 1-2 years 2+ years Base: Small businesses that have a currently website (n=690) Q39: How long ago did you last update your business website? Of those small business owners surveyed who currently have a business website (41%), the majority have updated their website within the last 6 months. This includes 51% who have updated their website within the past month, and 28% who have updated their website within the last 1-6 months. 38

Domain name registration Half of small businesses do not have a domain name registered Figure 22: Business has a domain name (%) Unsure 3% No 52% Yes, have a registered domain name 45% *Note: The data for the MYOB Small Business survey is collected online and this may influence overall results Base: Small business owners (n=1693) Q40: Does your business have a domain name registered? There is almost an equal split with businesses that do and businesses that don t have a registered domain name. A total of 52% of small businesses do not currently have a domain name registered for their business, while 45% do. Larger businesses are more likely to have a domain name registered with 77% of businesses with between 10 and 19 employees reporting a registered domain name, a steady decrease is then noted as the size of the business is reduced, and in comparison, sole traders (34%) and those with 1 employee (47%) are less likely to have a registered domain name. Small business owners in the Communications, Media and Marketing industry (80%) are more likely to have a registered domain name, as are Cultural and Recreational Services (71%) and IT/Information and Communication Technology (69%). On the other hand, small businesses in the Transport and Storage industry are the least likely to have a registered domain name (19%). 39

Appendix 1- Political trend Figure 23: Current vote for a House of Representatives election (%) 40 35 36 % 30 25 20 24 25 15 10 5 0 4 4 3 2 2 3 3 2 2 2 12 12 5 5 Liberal Party of Australia Australian Labor Party Australian Greens National Party of Australia Independents Family First Party Australian Democrats Don't know Don't care July 2007 June 2008 Figure 23.1: Preferred Treasurer (%) 40 35 35 30 % 25 20 23 21 15 17 10 9 5 6 0 July 2007 June 2008 Don't know/unsure Wayne Swann Don't care * Please note for Q17 change in Liberal Party Treasurer since the July 2007 MYOB Small Business survey. Base: Small business owners (n= 1693) 40

Appendix 2- House of Representatives preferred vote breakdown Table 2: Currently vote in a House of Representatives election breakdown (%) Current House of Representatives vote Liberal Party of Australia Australian Labor Party Don t know Don t care Total 36% 24% 12% 5% Total by Gender Male 39% 24% 11% Female 32% 26% 15% 5% 5% Total by Size of Business Sole Trader (No employee) 30% 27% 11% 1 Employee 36% 22% 12% 2 to 4 Employees 46% 21% 13% 5 to 9 Employees 47% 23% 13% 10 to 19 Employees 44% 15% 13% 6% 6% 3% 2% 8% Age 18-29 years 32% 25% 14% 30-39 years 34% 26% 16% 40-49 years 34% 23% 15% 50 59 years 38% 26% 10% 60-65 years 37% 27% 6% Over 65 years 53% 17% 3% 8% 7% 6% 2% 5% 1% 41

Appendix 3- Preferred Treasurer Table 3: Preferred Treasurer breakdown Preferred Treasurer Wayne Swann Malcolm Turnbull Don t know Don t care/no political interest Total 21% 32% 35% 9% Total by Gender Male 21% 39% 29% 8% Female 20% 20% 43% 12% Total by Size of Business Sole Trader (No employee) 24% 27% 34% 11% 1 Employee 21% 35% 32% 8% 2 to 4 Employees 17% 34% 37% 8% 5 to 9 Employees 7% 49% 37% 3% 10 to 19 Employees 10% 48% 31% 5% Age 18-29 years 17% 19% 44% 18% 30-39 years 18% 23% 41% 15% 40-49 years 18% 25% 41% 10% 50 59 years 25% 37% 28% 6% 60-65 years 29% 41% 25% 3% Over 65 years 13% 71% 15% 1% Total by State NSW 22% 34% 31% 9% VIC 18% 32% 38% 9% QLD 23% 32% 32% 8% SA 21% 28% 40% 9% WA 17% 25% 37% 17% TAS 16% 21% 55% 6% Total by Industry Agriculture 16% 40% 37% 5% Manufacturing 22% 27% 39% 9% Construction 18% 27% 40% 10% Wholesale trade 16% 43% 31% 11% Retail trade 15% 27% 34% 16% Accommodation, Café and restaurant 24% 19% 45% 7% Transport and storage 19% 35% 33% 12% Communications, media and marketing 32% 25% 28% services 13% Finance and insurance 20% 35% 32% 10% Property and business services 24% 36% 29% 6% Education 25% 26% 39% 8% Health and community services 30% 24% 37% Cultural and recreational services 34% 20% 31% Personal and other services 19% 21% 45% IT/Information and communication technology Base: Small business owners (n= 1693) 18% 31% 36% 9% 12% 11% 11% 42

Appendix 4- Awareness of Fair Work Australia breakdown Table 4: Awareness of Fair Work Australia policy breakdown (%) Awareness of Fair Work policy Yes No Unsure Total 58% 38% 9% Total by Gender Male 62% 35% 4% Female 51% 44% 4% Total by Size of Business Sole Trader (No employee) 56% 40% 4% 1 Employee 60% 36% 4% 2 to 4 Employees 55% 40% 5% 5 to 9 Employees 63% 34% 2% 10 to 19 Employees 66% 31% 4% Total by State NSW 59% 37% 4% VIC 58% 36% 6% QLD 57% 39% 4% SA 63% 36% 2% WA 46% 52% 2% TAS 75% 24% 1% Total by Industry Agriculture 68% 28% 4% Manufacturing 60% 34% 6% Construction 56% 39% 5% Wholesale trade 66% 31% 3% Retail trade 45% 49% 6% Accommodation, Café and restaurant 45% 51% 4% Transport and storage 58% 38% 3% Communications, media and marketing services 57% 39% 4% Finance and insurance 64% 34% 2% Property and business services 62% 37% 1% Education 71% 29% 0% Health and community services 53% 42% 5% Cultural and recreational services 47% 47% 6% Personal and other services 54% 38% 8% IT/Information and communication technology 51% 42% 7% Base: Small business owners (n= 1693) 43

Appendix 5- Research on Federal Budget breakdown Table 5: Actively looked into, reviewed or researched the new budget breakdown (%) Looked into 2008-2009 budget Yes No Total 37% 63% Total by Gender Male 39% 61% Female 35% 65% Total by Size of Business Sole Trader (No employee) 33% 67% 1 Employee 38% 62% 2 to 4 Employees 44% 56% 5 to 9 Employees 43% 57% 10 to 19 Employees 52% 48% Total by State NSW 36% 64% VIC 43% 57% QLD 36% 64% SA 44% 68% WA 24% 76% TAS 50% 50% Total by Industry Agriculture 36% 64% Manufacturing 39% 61% Construction 27% 73% Wholesale trade 49% 51% Retail trade 30% 70% Accommodation, Café and restaurant 27% 73% Transport and storage 43% 57% Communications, media and marketing services 41% 59% Finance and insurance 46% 54% Property and business services 48% 52% Education 50% 50% Health and community services 31% 69% Cultural and recreational services 31% 69% Personal and other services 33% 67% IT/Information and communication technology 27% 73% Base: Small business owners (n=1693) 44

Appendix 6- Domain name registration break down Table 6: Business has a domain name breakdown (%) Domain name registered Yes No Unsure Total 45% 52% 3% Total by Gender Male 48% 50% 2% Female 40% 55% 5% Total by Size of Business Sole Trader (No employee) 34% 63% 3% 1 Employee 47% 49% 4% 2 to 4 Employees 59% 37% 3% 5 to 9 Employees 70% 26% 4% 10 to 19 Employees 77% 66% 6% Total by State NSW 48% 49% 3% VIC 46% 52% 2% QLD 42% 54% 4% SA 43% 54% 3% WA 37% 59% 4% TAS 34% 56% 11% Total by Industry Agriculture 30% 69% 1% Manufacturing 52% 43% 5% Construction 34% 62% 5% Wholesale trade 61% 39% 0% Retail trade 53% 41% 6% Accommodation, Café and restaurant 43% 46% 11% Transport and storage 19% 74% 7% Communications, media and marketing services 81% 17% Finance and insurance 40% 58% 2% Property and business services 55% 44% 1% Education 60% 35% 5% Health and community services 37% 58% 5% Cultural and recreational services 71% 26% 3% Personal and other services 33% 64% 3% IT/Information and communication technology 69% 31% 2% 0% Base: Small business owners (n=1693) 45

Appendix 7- Reported hours per day/days per week Table 7: Number of hours and days worked (%) Reported hours/day and days/week 1 day 2 days 3 days 4 days 5 days 6 days 7 days 1 hour 1% 0% 0% 0% 0% 0% 0% 2 hours 1% 1% 0% 0% 1% 0% 0% 3 hours 0% 1% 0% 0% 0% 0% 1% 4 hours 0% 1% 2% 1% 1% 0% 0% 5 hours 0% 0% 1% 2% 2% 1% 0% 6 hours 0% 0% 1% 2% 2% 2% 0% 7 hours 0% 0% 1% 1% 3% 2% 1% 8 hours 0% 0% 1% 1% 7% 4% 1% 9 hours 0% 0% 0% 0% 8% 6% 2% 10 hours 0% 0% 0% 0% 4% 9% 3% 11 hours 0% 0% 0% 0% 1% 3% 1% 12 hours 0% 0% 0% 0% 1% 3% 3% > 12 hours 0% 0% 0% 0% 1% 1% 3% Base: Small business owners (n=1693) 46

Appendix 8- Frequency of online activities Table 8: Frequency of online activities (%) Online Activity Don t do online Weekly or more often Monthly or more often Every six months or more often Less than every 6 months Less than once a year Use online/internet banking 9% 82% 8% 1% 0% 0% Pay business bill on supplier websites 21% 54% 17% 4% 2% 2% Use webmail (e.g. hotmail, yahoo, gmail etc.) 22% 66% 6% 3% 2% 1% Use a web-based calendar 66% 20% 6% 3% 1% 4% Store your documents online (e.g. via an online document storage application) Backup your business information online (e.g. online backup application Use customer self-service tools online for various products/services (e.g. online technical support) Payment processing online (i.e. using a website as an EFTPOS terminal) Email marketing (e.g. to potential or existing customers) Transact with your customers (e.g. via a shopping cart) including accepting payments Online community or forum (e.g. noticeboards, advice, chat, etc.) 72% 18% 4% 2% 1% 3% 69% 20% 5% 2% 1% 3% 34% 22% 18% 14% 8% 4% 53% 32% 8% 3% 2% 2% 51% 22% 14% 8% 3% 3% 67% 16% 8% 3% 3% 2% 61% 19% 10% 5% 3% 3% Blog 80% 6% 5% 3% 2% 4% Wiki or other knowledge management systems Social applications, such as Myspace or Facebook etc. Distribute product brochures for your business 69% 11% 10% 5% 2% 3% 63% 16% 10% 6% 3% 3% 65% 11% 10% 7% 3% 3% Distribute photos, audio or video clips 54% 15% 14% 10% 4% 3% Distribute password-protected content (e.g. pricing or technical documents) to your customers 83% 7% 3% 2% 1% 4% Base: Small business owners (n=1693) 47